In: Accounting
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs.
Sales | $1,980,000 | Selling expenses—variable | $79,000 | |||
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Direct materials | 500,000 | Selling expenses—fixed | 56,000 | |||
Direct labor | 380,000 | Administrative expenses—variable | 27,000 | |||
Manufacturing overhead—variable | 400,000 | Administrative expenses—fixed | 179,500 | |||
Manufacturing overhead—fixed | 210,000 |
Prepare a CVP income statement for 2020 based on management’s estimates.
SHERIDAN COMPANY |
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select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
$enter a dollar amount |
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select an opening name for section one Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit | ||||
select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
$enter a dollar amount |
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select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a dollar amount |
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select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a dollar amount |
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select a closing name for section one Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a total amount for section one |
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select a summarirzing line for the first part Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a total amount for the first part |
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select an opening name for section two Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit | ||||
select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a dollar amount |
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select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a dollar amount |
|||
select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a dollar amount |
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select a closing name for section two Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
enter a total amount for section two |
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select a closing name for this statement Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed ExpensesTotal Variable ExpensesVariable ExpensesGross Profit |
$enter a total net income or loss amount |
eTextbook and Media
Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.)
Variable cost per bottle |
$enter Variable cost per bottle in dollars rounded to 3 decimal places |
eTextbook and Media
Compute the break-even point in (1) units and (2) dollars. (Round answers to 0 decimal places, e.g. 1,225.)
(1) | Compute the break-even point |
enter the break-even point in units |
units | ||
(2) | Compute the break-even point |
$enter the break-even point in dollars |
eTextbook and Media
Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.)
Contribution margin ratio |
enter the contribution margin ratio in percentages rounded to 0 decimal places |
% | |
Margin of safety ratio |
enter the Margin of safety ratio in percentages rounded to 0 decimal places |
% |
eTextbook and Media
Determine the sales dollars required to earn net income of $150,000. (Round answer to 0 decimal places, e.g. 1,225.)
Required sales dollars |
$enter the Required sales dollars |